Egyptalum all set for modernization, post a huge record loss for FY 2019-20

On 25^th January 2021, Hisham Tawfik, Minister of Public Business Sector announced that “Egypt’s government is warming up to implement the modernisation project of Egyptalum, a national company for aluminium industries listed in EGX as Egypt Aluminium (EGAL).”

Tawfik also stated: “US-based Bechtel, the project consultant, is expected to finalise the project’s feasibility study by mid-2021.”

“The project includes the replacement of old parts over two phases and adopting new technology that uses less electricity intending to increase the company’s production capacity to reach 250,000 tonnes annually”, according to the minister.

Hisham Tawfik added that six international companies participated in the public tender the ministry conducted to provide consulting services and prepare feasibility studies for establishing a new production line that focuses on producing auto wheels.

However, this has come amid the crisis of the liquidation of Egypt’s giant Iron and Steel Company that occurred on 12^th January according to a resolution passed by the company’s board of directors driven by its significant losses over the years.

Egyptalum is a subsidiary of the Metallurgical Industries Holding Company and both the companies are working under the Ministry of Public Business Sector. According to the company’s financial statements released in December’20, the company’s total losses in FY2019/2020 recorded EGP 994 million, compared to FY2018/2019’s EGP 571 million in profits.

COVID-19 pandemic and the weak return on investments were the major reasons for the losses, as it affected the company’s exports severely.